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September 15, 2014 02:00 AM

CMA inks exclusive Latin America distribution deal

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    PANAMA CITY, Panama—China Manufacturers Alliance L.L.C. (CMA)/Double Coin Holdings has signed Lucy's Tire Inc. in Medley, Fla., as its exclusive distributor for Double Coin-brand truck and bus radials and OTR tires in Central America and some Caribbean islands.

    With this partnership, “we are trying to give more benefits to our customers,” said Andres Urena, Latin America regional sales manager for CMA. This includes better service, access to credit, improving prices by volumes and access to inventories.

    Tire Business spoke with Mr. Urena during the recent Latin American & Caribbean Tyre Show in Panama CIty, where CMA/Double Coin and Lucy's Tire shared a booth.

    The agreement with Lucy's took effect in May, Mr. Urena said, and is the first time the company has used a distributor in the region.

    Lucy's will distribute tires to customers in the region from its warehouse in Miami, as well as coordinate shipping of full containers dispatched from Double Coin plants in China.

    Previously, CMA/Double Coin supplied its Central America customers direct with container shipments that could take as many as 60 days to arrive from China.

    Cutting down this time is difficult due to the distance from China to Central America, Mr. Urena said. “But now with the option to refill open containers from Miami, it is very helpful to optimize inventories in each country while the tires are coming from China to reach Central America.”

    As a result, in emergency situations and to optimize inventory levels in critical sizes, Lucy's will be able to supply tires from its Miami warehouse in one to two weeks to any location in Central America.

    “This is the economic way to do business with big tires from Shanghai,” Mr. Urena said, adding that this approach allows customers to keep a balance of inventory.

    “This maybe is the most important benefit that we can give them,” he said.

    Under the new arrangement, Lucy's will be responsible for securing and processing orders, arranging logistics and offering publicity and advertising, Mr. Urena said. CMA will support the partnership with co-op funding, supervision of the markets, technical training, maintaining relationships with distributors and end users and providing brand building activities in the region.

    At the Double Coin/Lucy's Tire booth, the companies showcased three new truck/bus tire sizes in different models for all CMA markets: RLB300 light truck radial in size 7.50R16 14 ply; RR902 all-position medium truck radial in size 9.5R17.5 16 ply; and RLB850 all-position light truck radial in size 13R22.5 18 ply.

    Since then Lucy's has added several more sizes, including: RR505 premium steer and all-position multi-use tire in size 12R22.5 18 ply; RR99 premium on- and off-highway mixed service all-position tire in size 295/80R22.5 18 ply; RR100 premium all-position radial in size 275R80R22.5 16 ply; RLB850 radial for severe off-highway use in size 12R22.5 18 ply; and RR902 all-position/mixed use tire in size 315/-80R22.5 18 ply.

    “Double Coin is very focused on the transportation segment, and that is one of the keys of success for Double Coin,” said Luis Garrido, Central America area sales manager for Lucy's.

    “The factory understands very well transportation needs.”

    To reach this reporter: dzielasko@ crain.com; 330-865-6131.

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